Investing in U.S. stocks provides several advantages to Canadians. Investors shopping south of the border can diversify their portfolio while gaining access to the largest economy in the world. Some of these companies sell their products and services all around the world, allowing them to expand revenue and earnings at a sustainable pace.
With a volatile stock market in 2022, Canadians can now buy U.S. stocks at a much lower valuation and benefit from outsized gains over time. Here are three promising U.S. stocks you can buy with $100 right now.
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Ford Motor Company
One of the largest automobile companies in the world, Ford (NYSE:F) is a fascinating bet right now. The legacy auto manufacturer is aggressively expanding its presence in the electric vehicle segment. By the end of 2023, Ford aims to manufacture and ship 60,000 EVs every month. And by 2027, the automaker expects to produce two million EVs each year.
In 2021, Ford sold 3.9 million vehicles. So, EVs could account for a significant portion of total sales for Ford by 2026, driving its revenue growth higher in the upcoming years. Given its enviable forecasts, Ford might become the second largest EV manufacturer in the world by 2026.
Ford has also entered into several agreements to secure the required battery capacity to meet its production targets. It claims to have secured 70% of the battery requirements to support the manufacturing of two million vehicles by 2026.
Valued at 7.2 times forward earnings, Ford stock is cheap. Analysts, in fact, expect Ford’s earnings to expand by 13.5% annually in the next five years. In addition to its cheap valuation, Ford also offers investors a dividend yield of 4.2%.
Curaleaf
One of the largest marijuana producers in the world, Curaleaf (CNSX:CURA) is valued at a market cap of $5.5 billion. The cannabis company has increased revenue from US$77 million in 2018 to US$1.2 billion in 2021, indicating an annual average growth rate of 150% in this period.
While most Canadian marijuana producers are grappling with negative profit margins and high cash burn rates, Curaleaf reported operating income of US$175.6 million in 2021, compared to a loss of US$28.7 million in 2018.
The wave of cannabis legalization in the U.S. in early 2021 acted as a massive tailwind for Curaleaf. But marijuana is still illegal in the country at the federal level, limiting the expansion plans of Curaleaf and its peers.
Curaleaf is forecast to increase revenue by 18% to $1.9 billion in 2022 and by 26% to $2.3 billion in 2023. So, the stock is valued at a quite reasonable 2.4 times forward sales.
Roku
The final U.S. stock on my list is streaming giant Roku (NASDAQ:ROKU). Shares of Roku have declined by a staggering 85% from all-time highs, valuing the company at a market cap of US$10 billion.
Roku connects content publishers with its wide base of users. It is a market leader in the streaming device business and enjoys an industry-leading net promoter score of 71. Roku is also the most popular streaming platform in North America in terms of user engagement.
Roku devices powered over 30% of TV streaming time in Q2 while accounting for 23% of streaming devices globally. A highly engaged user base should allow Roku to accelerate ad revenue in the upcoming decade.
Due to its wide reach, Roku is among the top players in the connected TV segment. Analysts expect Roku stock to surge by at least 10% in the next year.
